Correlation Between ShuYu Civilian and Shenzhen Noposion
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By analyzing existing cross correlation between ShuYu Civilian Pharmacy and Shenzhen Noposion Agrochemicals, you can compare the effects of market volatilities on ShuYu Civilian and Shenzhen Noposion and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ShuYu Civilian with a short position of Shenzhen Noposion. Check out your portfolio center. Please also check ongoing floating volatility patterns of ShuYu Civilian and Shenzhen Noposion.
Diversification Opportunities for ShuYu Civilian and Shenzhen Noposion
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between ShuYu and Shenzhen is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding ShuYu Civilian Pharmacy and Shenzhen Noposion Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Noposion and ShuYu Civilian is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ShuYu Civilian Pharmacy are associated (or correlated) with Shenzhen Noposion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Noposion has no effect on the direction of ShuYu Civilian i.e., ShuYu Civilian and Shenzhen Noposion go up and down completely randomly.
Pair Corralation between ShuYu Civilian and Shenzhen Noposion
Assuming the 90 days trading horizon ShuYu Civilian Pharmacy is expected to generate 0.63 times more return on investment than Shenzhen Noposion. However, ShuYu Civilian Pharmacy is 1.59 times less risky than Shenzhen Noposion. It trades about -0.07 of its potential returns per unit of risk. Shenzhen Noposion Agrochemicals is currently generating about -0.05 per unit of risk. If you would invest 1,144 in ShuYu Civilian Pharmacy on November 7, 2024 and sell it today you would lose (30.00) from holding ShuYu Civilian Pharmacy or give up 2.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ShuYu Civilian Pharmacy vs. Shenzhen Noposion Agrochemical
Performance |
| Timeline |
| ShuYu Civilian Pharmacy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Shenzhen Noposion |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
ShuYu Civilian and Shenzhen Noposion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ShuYu Civilian and Shenzhen Noposion
The main advantage of trading using opposite ShuYu Civilian and Shenzhen Noposion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ShuYu Civilian position performs unexpectedly, Shenzhen Noposion can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shenzhen Noposion will offset losses from the drop in Shenzhen Noposion's long position.The idea behind ShuYu Civilian Pharmacy and Shenzhen Noposion Agrochemicals pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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